Sustainability governance
We have set up a governance framework to develop, enhance, implement and monitor our Group Sustainability Strategy.
At Swiss Re’s highest governance level, the BoD is responsible for overseeing the development and adoption of the Group Sustainability Strategy and related policies. It has assigned detailed sustainability-related responsibilities to four BoD committees (see graph).
Swiss Re's sustainability and climate-related governance
1 Only those Board committees with allocated responsibilities related to sustainability and climate change listed.
2 Dedicated sustainability and climate change roles, networks and/or committees in all Group Functions and on Business level.
3 The iptiQ Division has been in place since 1 January 2021. The Business Unit Life Capital was disbanded at the end of December 2020.
While the BoD is responsible for oversight, the Group EC ensures the implementation of the Group Sustainability Strategy. The Group EC members who head Swiss Re’s Group Functions, the Business Units Reinsurance and Corporate Solutions, the iptiQ Division as well as Public Sector Solutions have explicit responsibilities related to sustainability.
The Group EC has established the Group Sustainability Council (GSC), an advisory body, to better coordinate and align sustainability activities at Group level. The GSC reviews the annual sustainability assessment as well as the sustainability-related performance targets, which are considered for determining the Group Annual Performance Incentive (API) pool (see below). The GSC is composed of Group EC members and other senior management representatives and is chaired by the Group Chief Risk Officer.
On an operational level, the business and many Group Functions have defined their own sustainability bodies, dedicated roles and built up networks to implement our Group Sustainability Strategy. In 2020, we also created a new team that drives the implementation of the Group Sustainability Strategy and related initiatives across the Group.
You can find detailed information about Swiss Re’s sustainability and climate-related governance, including a description of the responsibilities of the governing bodies, on our website.
Sustainability-related targets linked to compensation
To further embed sustainability in all our business activities, we have continued to strengthen the link between remuneration and sustainability performance. As part of our Group Sustainability Strategy implementation, we introduced sustainability as an additional qualitative assessment dimension for determining our Group Annual Performance Incentive (API) pool. This establishes a clear connection between sustainability targets and compensation for all employees, including the Group EC.
The sustainability assessment in 2020 is primarily based on qualitative key performance indicators (KPIs) and targets. These are aligned with our 2030 Sustainability Ambitions and our net-zero commitments.
In the course of 2020, we further enhanced the framework by defining quantitative KPIs and respective targets, which will form the basis for the 2021 performance assessment. Swiss Re will continue refining sustainability-related KPIs and targets to ensure we are reaching our ambitious sustainability commitments.
For a description of the Group API pool funding process, see our Financial Report 2020. For performance outcomes on the qualitative assessment in 2020, including sustainability aspects, see section “Our topics, targets and achievements” in this report, as well as our Financial Report 2020.